NATIONAL BANKING UNDER THE FEDERAL RESERVE SYSTEM 
be a member of the board of directors, and shall be chairman of the 
board unless the board shall designate another member as chairman. 
The Comptroller must be furnished with the original signature of 
these officers, as well as notified of the date upon which they were 
elected. 
8. Initial payment of capital—The law provides that 509, of the 
capital stock of a national bank must be paid in cash (not in assets 
of another corporation, notes, or other like evidence of debt), and 
requires payment of the remaining 509%, in not less than five equal 
monthly cash installments although there would be no objection to 
the incorporation in the subscription contract of a provision that the 
entire amount due on each share shall be paid at the call of the 
directors prior to the date on which payment would be required by 
law. (See 11 below). When at least 509, of the stock has been paid, 
each shareholder having paid not less than one-half on each share sub- 
scribed, and when all other legal requirements have been complied 
with, the president, or cashier, and a majority of the directors, 
certify these facts under oath to the Comptroller. 
The Comptroller’s office further requires a statement showing the 
total amount collected on stock subscriptions. The difference be- 
tween this amount and organization expenditures should be deposited 
in a disinterested bank, the president or cashier of which is to certify 
to the Comptroller’s office the amount on deposit to the credit of the 
organizing bank. 
9. Beginning business—When the Comptroller is convinced that 
all preliminary conditions regarding the organization of the proposed 
bank have been satisfactorily complied with, including the subscrip- 
tion and payment for the required amount of Federal reserve bank 
stock (See 10 below), he will issue a certificate of authority to com- 
mence business (generally known as the bank’s charter). This certifi- 
cate, upon its receipt, must be published in a local or county news- 
paper for a period of 60 days. The bank may begin its operations 
immediately after it has been officially notified that its certificate has 
been issued, and the Comptroller should be notified of the date upon 
which business is actually begun. 
10. Federal Reserve System—Every national bank automatically be- 
comes a member of the Federal Reserve System, and is required to 
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